NEW DELHI(PTI): Indian government has become aware of the Misuse of the liberal foreign exchange regime by several companies which are spending large amounts in hard currencies on advertising their products through certain foreign satellite television networks such as the star TV. “The Times of India” reports that the Indian finance ministry and the Reserve Bank of India (RBI) are considering tough measures against such practices which amount to a drain on the foreign exchange resources of the country. The government is likely to be particularly tough with those companies which spend precious foreign exchange on advertisements of products being sold essentially in the domestic market. For export products, however an exception is sought to be made, ‘writes the paper.
The Reserve Bank of India had issued instructions last week restricting companies from advertising on foreign TV networks.
AS a rule, sponsorship or advertisement Support by India companies for programs on foreign TV networks, would be denied in all cases where the same programs are telecast by the official electronic media “Doordarshan.”
This would check foreign exchange out go to a large extent as “Doordarshan” would be directly acquiring telecast rights for major international sporting and other cultural events.
It is felt that there is no justification for allowing Indian companies to advertise on foreign TV networks, particularly since the very programs would be telecast by Doordarshan.
Article extracted from this publication >> June 11, 1993
